Know the Product

  • What are futures?
Futures contracts, referred to as futures, are a kind of financial derivatives, which means that buyers and sellers sign a contract to agree to deliver a specified quantity of commodities or financial products at a specified time and price.

  • What are options?
Option is also a kind of financial derivative product, which can be understood as an upgraded version of futures. The buyer needs to pay the premium, and then he can get the option of whether to perform the contract before the expiration date, that is, he only has the right, but not the obligation. If the option is to buy a future, it is a call option, and if the option is to sell a future, it is a put option.

  • Advantages of Futures and Options
1. Leverage
Investors only need to pay a part of margin to obtain the entire increase in the underlying product and improve the efficiency of capital use.

2. Two-way investment opportunities
In general, investors can only make profits when the price rises. But by buying and selling futures, investors can not only amplify the gains from the rise, but also gain in the falling market.

3. Hedging portfolio risk
Due to the feature that it can be profitable when the market falls, it is often allocated in the investment portfolio to reduce the risk of the portfolio and ensure the return of the portfolio.

4. Low transaction fees
Under normal circumstances, futures trading has lower fees than stock trading, which is suitable for high-frequency trading.

  • Risks to be aware of with futures and options
Due to the leveraged nature of futures, profit/loss volatility may be greater for investors. 
If the amount of loss exceeds the initial margin amount, the client will be required to deposit additional margin within a certain period of time, that is, Margin Call. Otherwise, the investor's contract will be forced to liquidate, if the account still has arrears, the client will need to make it up to the broker.

  • Winter and summer time changes
United States: Summer time starts on the second Sunday in March each year, and winter time starts on the first Sunday in November each year. 
UK: Summer time starts on the last Sunday in March each year, and winter time starts on the last Sunday in October each year.


Know the Product

  • What are futures?
Futures contracts, referred to as futures, are a kind of financial derivatives, which means that buyers and sellers sign a contract to agree to deliver a specified quantity of commodities or financial products at a specified time and price.

  • What are options?
Option is also a kind of financial derivative product, which can be understood as an upgraded version of futures. The buyer needs to pay the premium, and then he can get the option of whether to perform the contract before the expiration date, that is, he only has the right, but not the obligation. If the option is to buy a future, it is a call option, and if the option is to sell a future, it is a put option.

  • Advantages of Futures and Options
1. Leverage
Investors only need to pay a part of margin to obtain the entire increase in the underlying product and improve the efficiency of capital use.

2. Two-way investment opportunities
In general, investors can only make profits when the price rises. But by buying and selling futures, investors can not only amplify the gains from the rise, but also gain in the falling market.

3. Hedging portfolio risk
Due to the feature that it can be profitable when the market falls, it is often allocated in the investment portfolio to reduce the risk of the portfolio and ensure the return of the portfolio.

4. Low transaction fees
Under normal circumstances, futures trading has lower fees than stock trading, which is suitable for high-frequency trading.

  • Risks to be aware of with futures and options
Due to the leveraged nature of futures, profit/loss volatility may be greater for investors.
If the amount of loss exceeds the initial margin amount, the client will be required to deposit additional margin within a certain period of time, that is, Margin Call. Otherwise, the investor's contract will be forced to liquidate, if the account still has arrears, the client will need to make it up to the broker.

  • Winter and summer time changes
United States: Summer time starts on the second Sunday in March each year, and winter time starts on the first Sunday in November each year. 
UK: Summer time starts on the last Sunday in March each year, and winter time starts on the last Sunday in October each year.